Carachapampa gold silver drilling update

16 January 2012

Carachapampa gold-silver drilling update ASX Release Stock Code: CDB Executive Summary

• Condor Mines is highly encouraged by the degree of alteration encountered in the initial eight completed drill holes at Carachapampa, northern Chile. The first samples have been returned from the laboratory and are being entered into the geological database for evaluation, although most assays are still to be received.

• Targeted diamond drilling planned based on results; drill contractors being sought.

• Additional license application lodged over alteration extensions at Gold Iron.

Drilling Progress at Carachapampa

Condor Blanco Mines Limited's ("Condor Mines'", "the Company's") drilling at its Carachapampa epithermal gold-silver project in northern Chile is progressing well. The property is located in the renowned Maricunga Belt 15km NE of the La Coipa Mine and just 4km from the Chimberos Mine recently acquired by Kingsgate Consolidated Limited (ASX: KCN) subsidiary Laguna Resources NL (ASX: LRC). Over a three week period from 30 November 2011 to 23 December 2011, eight drill holes were completed for a total of 1,604m. Drilling contractors began again on 12 January after the Christmas-New Year break. The drilling operation at Carachapampa is shown in Figure 1 below.

Figure 1: Drilling RCCP01 at Carachapampa

Logging for the first eight holes has also been completed with results becoming progressively available as assays are received back from the ALS laboratory in La Serena. The material intersected in all eight holes shows moderate to strong argillic alteration throughout, with disseminated pyrite varying from 1% to 5% becoming apparent from depths of 30m to 48m. Well-developed vuggy and massive silica has also been intersected to varying degrees in all three holes logged. The extensive alteration, presence of ubiquitous sulphides and particularly the occurrence of vuggy silica are all highly encouraging.
The Company is sufficiently encouraged by the alteration to undertake diamond drilling of the more clay-rich zones of mineralisation to assess mineralogy of the material which is difficult to assess with RC drilling. Condor Mines is currently in discussion with the drilling contractor to supply a diamond drilling rig for this program which may become available in late January-February.

New Gold Iron License Application and Yaretas Access Roads

Condor Mines is also pleased to advise that it has lodged a further license application over extensions of the alteration system at Gold Iron. The newly applied for mining concession "Gold Iron 1/15" is located at the northern end of Gold Iron adjacent to the existing licenses.
The rehabilitation and construction of access roads to the Yaretas Project were completed on 19
December. 4.3km of new roads were constructed to enable the planned field program to commence. This is scheduled to occur immediately after the Carachapampa drilling program is completed.
Enquiries: Mr Glen Darby
Managing Director
Condor Blanco Mines Limited
Office: [phone]
Email: [e-mail]

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Carl Swensson, who is a Member of the Australasian Institute of Mining & Metallurgy. Carl Swensson is a director of Condor Blanco Mines Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Carl Swensson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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